Q1. If you had £200k cash whats the best way to buy a £150k house.
15 June 2006, 02:20 PM
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Q1. If you had £200k cash whats the best way to buy a £150k house.
Assuming it was a first house and you had no outstanding debts or were in need of the money for anything else.
15 June 2006, 02:30 PM
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What i mean is pay cash,get a mortgage,or what about those offset mortgages?
Surely paying cash is the best because you save all that interest?
Surely paying cash is the best because you save all that interest?
15 June 2006, 02:46 PM
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Pay Cash. I thought about this as well .... but by the time you **** about getting a mortgage & then some other ****** getting you money you would make more on buying the house with cash than with a mortgage.
With my last house i took a very low mortgage & paid as much as i could into it. It will work out well when i get the money on friday
With my last house i took a very low mortgage & paid as much as i could into it. It will work out well when i get the money on friday
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15 June 2006, 03:00 PM
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Why not buy a couple of smaller houses that might rise in price more over the years rent them out and get a house with the income from the rents?
S'what I'd do!
S'what I'd do!
15 June 2006, 03:04 PM
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Originally Posted by afroking
Why not buy a couple of smaller houses that might rise in price more over the years rent them out and get a house with the income from the rents?
S'what I'd do!
S'what I'd do!
15 June 2006, 03:05 PM
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Buy the two next door neighbours properties and rent them to immigrants for 6 months, then wait till the value drops and then offer them £100k 
15 June 2006, 03:21 PM
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all down to your attitude to risk....you can borrow at just under 5%....can you make that net in investment return with the money you no longer need because you got a mortage? the anwser is very propably yes.
can you live with "probably"?
ignore the "buy to let" posts......they are the same as suggesting steroids for the folks that ask what to eat to tone up a little!
can you live with "probably"?
ignore the "buy to let" posts......they are the same as suggesting steroids for the folks that ask what to eat to tone up a little!
15 June 2006, 03:49 PM
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Originally Posted by The Snug Rhino
all down to your attitude to risk....you can borrow at just under 5%....can you make that net in investment return with the money you no longer need because you got a mortage? the anwser is very propably yes.
What do mega rich people do in the same situation?
15 June 2006, 07:01 PM
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Ignore everyone else.
I would advise you to shop around, seek to negotiate and then buy the property for £150k.
That will be £50k please for the advice - my invoice will be in the post.
Rannoch
I would advise you to shop around, seek to negotiate and then buy the property for £150k.
That will be £50k please for the advice - my invoice will be in the post.
Rannoch
15 June 2006, 07:48 PM
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Don't listen to any of these muppets. Take a 100% mortgage for the £150k flat and invest the £200k in the following: There is a prince in Nigeria who needs to use someones account to move £10million out of Africa. He will need the £200k for admin and minor bribes and then will split the £10million with you.
Seriously though there are simply two options
If you feel you can make more than 5% net profit from investing your cash take a big mortgage and invest the cash. If you can't then buy the house cash.
Seriously though there are simply two options
If you feel you can make more than 5% net profit from investing your cash take a big mortgage and invest the cash. If you can't then buy the house cash.
15 June 2006, 11:07 PM
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Simply put, whilst you can get a guaranteed return on about the same rate as a mortgage, you'll pay tax on it. I have nearly that amount in the bank as I'm "between houses" at the moment (living in rented while a purchase goes through). I'm paying £150 / month tax on the interest. You might not get tax relief on the mortgage, but you don't pay tax on any rises in the property value.
On top of that, I'd stick the max allowance (£7k IIRC) in a good ISA with suitably managed fund(s) or similar, as that can give you a good tax free growth; in good years the right funds increase lots (one of mine went up 30-odd % last year). If you still have plenty of savings next year, do the same on the ISA again. In the meantime, I hope you're getting well over 4.5% on any savings you have via a suitable internet account as a minimum!
On top of that, I'd stick the max allowance (£7k IIRC) in a good ISA with suitably managed fund(s) or similar, as that can give you a good tax free growth; in good years the right funds increase lots (one of mine went up 30-odd % last year). If you still have plenty of savings next year, do the same on the ISA again. In the meantime, I hope you're getting well over 4.5% on any savings you have via a suitable internet account as a minimum!
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